CFTC defends approval of U.S. bitcoin perpetual futures

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CFTC on bitcoin perpetual futures

Highlights

CFTC Chair Michael Selig defends approval of bitcoin perpetual futures, aiming to bring internationally developed products under U.S. regulation for greater oversight.
Kalshi becomes the first U.S. platform permitted to offer bitcoin perpetual futures, generating over $3 billion in notional volume in just over a week of beta testing.
Traditional futures industry, notably CME Group CEO Terrence Duffy, criticizes the high leverage and risk, while Selig rebuffs concerns about product complexity and denies political influence in the CFTC's decision.

Regulator backs domestic rollout of perps

As reported by CNBC, Commodity Futures Trading Commission Chair Michael Selig says the agency’s decision to allow perpetual futures in the U.S. is aimed at moving internationally developed products into a regulated domestic market.

Speaking on CNBC's "Fast Money" on Monday, Selig says established market players will always fear new products, but the commission wants to make sure contracts with no expiration date are available under U.S. oversight. He says the goal is to offer the product safely and with strong regulation rather than leave activity offshore.

In late May, the CFTC approved prediction market platform Kalshi to offer bitcoin perpetual futures, marking the first time the asset class is allowed in the U.S. Kalshi has since expanded the product to other cryptocurrencies, and the company says at a Thursday event that its contracts generate more than $3 billion in notional volume in a little over a week of beta testing.

Industry criticism and retail risk debate

The approval is drawing criticism from parts of the traditional futures industry. CME Group CEO Terrence Duffy says shortly after the regulatory decision that the leverage embedded in perpetual futures is large and risky.

Selig rejects the argument that retail traders should be steered away from the contracts because they are difficult to understand. He says options are also complex, and adds that brokers are responsible for disclosure and for assessing whether customers are suitable to trade in those markets.

Selig also denies that political pressure from President Donald Trump's administration plays a role in the approval. He calls that suggestion absurd after questions arise because Donald Trump Jr. serves as a strategic adviser to Kalshi.

Our earlier article on Coinbase (COIN) focused on the company’s rollout of “Coinbase for Agents,” a new platform that lets AI agents access accounts to execute transactions and automate user workflows. We noted that the product expansion could support higher engagement and volumes, while COIN’s technical picture showed strong short-term momentum alongside overbought signals and clearly defined support and resistance levels to watch.

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